Forex Market

Forex Crrency

Friday, 16 September 2011

The trading strategy, as we are told in a previous article, not on facts and on the goal of getting rich quick is based. It takes great efforts to learn and develop this system of trade. As always try a demo account before you operate with real money.

Trading in the Forex market has many advantages, but also great risks. You must be aware that this factor is always accepting risks. The most important tip: Not with money that you can not lose trade.

Talk about trend following. When you hear that the trend is your friend did, this system will reveal the mechanisms that provide the basis for this claim. His way (single) on the market approach will give you a great insight into market movements and allow you, that whatever happened to the prison, the same is not random, but there are a few to see behind the whole movement of prices.

Through practice and application of rules with which they trade system serves a clearer picture of the market will produce, and you can begin to reap the financial fruits.

The trend follower is unique because it does not attempt to predict the future, on the other side is a tool to identify the current trend and operate after the expiry of the market. Mastering the trading system will give you peace of mind, and you will not need to keep up with economic events that do not understand the meaning of the numbers of the market, nor the opinions of experts.

Soon we will be some differences in the trade between this system and other systems, following the trend, or at a particular trend, and the "persecution" which it is based.

Wednesday, 14 September 2011

FOREX trading is all about trading foreign currencies, stocks and similar products. Determine a country's currency against the currency of another country's value weighed. The value of this foreign currency is taken into consideration when trading stocks on the foreign exchange markets. Most countries have control over the value of that countries value, involving the currency or money. Those who are often involved in foreign exchange markets include banks, large corporations, governments and financial institutions.

What makes the FOREX market different from the stock market?
A forex market is acting to one that at least two countries are involved, and it can take place worldwide. The two countries are one, with the investor, and two, the land of the money going in. Most all transactions take place in the FOREX market to place through a broker, such as a bank will invest to take.

What makes the FOREX markets?
The foreign exchange market from a variety of transactions and counties from. Those who are involved in the FOREX market, trade in large quantities, large amounts of money. Those who are involved in the FOREX market are usually fast in cash or companies involved in trading highly liquid funds that can buy and sell. The market is big, very big. You should consider the FOREX market is much larger than the stock market in a country as a whole. Those who are involved in the FOREX market daily trading volume 24 hours a day and sometimes trading is completed over the weekend, but not all weekends.

You could be the number of people who are involved in FOREX trading surprised. In 2004, almost two trillion U.S. dollars in average daily trading volume. This place is a huge number for the number of daily transactions. Think about how much one trillion U.S. dollars really is and then times that by two, and the money that changes hands every day!

The Forex market is nothing new, but since more than 30 years been used. With the introduction of computers, and then the Internet, trading on the FOREX market, as more and more people and businesses realize the availablily to grow this market trading. FOREX only about ten percent of total trade from country to country, but to grow as the popularity in this market, so this number could.

Friday, 9 September 2011

Forex is an abbreviation for Foreign Exchange. Forex trading is a trademark of currencies from different countries against each other. For example, the circulating currency is the Euro (EUR) and U.S. Dollars (USD) in the United States. An example of a forex trading is the simultaneous buying and selling of euro-dollar.

How does forex trading?

Typically, a currency trading forex broker or market maker is made​​. A forex trader can select a currency pair that is to be changed in the expected value. It is better explained with an example below:

"If you bought 800 euros in January 2009, you have cost $ 1000 USD. During the year the euro's value rose against the U.S. dollar value. At the end of the year 800 € was worth $ 1,100 USD. Have you had your chosen end trade at this point, you had a profit of $ 100 USD. "

Forex Trading gained much popularity after the arrival of the Internet era. There are online forex brokers that you can order with just a few mouse clicks. The broker then passes the order along to partners in the interbank market to fill your position. If you close your trade, the broker closes the position on the interbank market and credit your account with the loss or gain. All this can happen literally within seconds.

Tuesday, 6 September 2011

Price action forex traders will look for technical trading signals at various areas on a chart. These include Fibonacci, support and resistance price structure, moving averages and many other mathematically derived levels. There is one particular area that often has more focus than others and therefore greater order flow once hit – these are the round numbers. There is no ambiguity – as can be seen with trend-lines and the like – when referring to round numbers; they are there for all to see and this is what we try to benefit from.

Round numbers in daily life
We often round numbers up or down when going about our day to day lives by reducing the digits while trying to keep close to the original value; how often do you ask to borrow $14.75 from a friend when this is the actual figure you need? You would typically ask for $15 as this is easier to remember. The same goes for trading; most stop losses will be clustered at or around the nearest round numbers. Intra-day price action often bounces off x.100 or y.500 levels. When the level is broken there are equally often short bursts of momentum as clusters of orders are hit. Traders will say to themselves “if it hits x.100 I’m out” or “when y.500 breaks I’m going long”.

How do traders use these round numbers?
How can we incorporate this into a trading strategy you may well ask. In my opinion, one of the best ways of approaching this is to look for price action signals at or around these areas; the bigger the round number the better. A simple touch of the level is often too random as we never know whether there will be a strong move through or a rejection.

AUD/USD chart exampleThe attached 1 hour chart shows how price reacted to a hit on parity for the AUD/USD pair recently. The lower yellow line, at parity, was pierced on an intra-day basis and price subsequently failed to show any further momentum and closed as a bullish hammer candle. The exact candle type does not concern me, there has to be a decisive reaction to the level though. On this occasion the market had driven price down from 1.1000 and it was no major surprise seeing the 1.0000 level act as support. The potential entry came when price gave a large rejection shadow from the level and subsequently confirmed this as a signal by moving above the 1 hour candle.

Why does price react like this?

Many people want to know exactly why this happens. There are the aforementioned clusters of orders, both stop loss exits and entry orders, there are option levels that are targeted by the market and sometimes protected if the incentive is in place and many other reasons. We will never have full visibility of the order flow associated with any level and this is why I prefer to see price action reactions. These areas become even more relevant to me if there is a confluence with other technical elements. A large x000 round number at the same level as a 61.8% Fibonacci retrace will really grab my attention; If the market then shows me its hand by reacting strongly and provides one of my favoured reversal signals the probability of the trade working out in my favour often increases yet again. Look for these levels on your charting platform and mark them out in advance. Pick the really big round numbers and see how price interacts with them. My preferred route when trying anything new is to test it on a demo-trading platform. This allows a familiarity to be gained with no money at risk and the potential to iron out any issues at this stage.

Saturday, 3 September 2011

Forex is based on the connection between various currencies in the world, especially the currency of the leading countries, the U.S. dollar, British pound, Japanese Yen, and more. Forex traders are trying to predict the frequent adjustments to the relation between currency pairs and use it for harvesting quick profits. Great temptation to this form of trade due to several reasons. Why forex?

High accessibility – Currency trading takes place 24 hours a day, seven days per week, you can trade, usually with the services and retail companies platforms. Companies charge lower fees and provide technical knowledge on how to trade, plus there is optimal access many databases via the Internet.

Optional high profits – high liquidity forex market allows the creation of huge profits from a very short time periods. Proper safe forex investment is currency relative value in relation to another currency, will allow harvesting profitable. Although various companies offer selection for high leverages that may result in high profits but may result in sharp losses conversely. Certainly always remember, as with high profit potential there’s also increased risk.

Trading is simple and straightforward – to generate the trade over time has to understand the area specialized in, but the relative simplicity of doing the availability of various companies in fussing creates fertile ground for investments.